Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan and China will exit from a joint company created for the construction of the China-Kyrgyzstan-Uzbekistan railway after the project pays for itself. This was announced by President of Kyrgyzstan Sadyr Japarov.

The Kyrgyz news agency "Kabar" reports that Sadyr Japarov emphasized the commercial nature of the project, which is not related to external debt. According to him, the three countries have united and established a joint company.

The President noted that the company’s office is located in Bishkek, with the CEO appointed from the Kyrgyz side and two deputies from the Chinese and Uzbek sides. Japarov added that all funds will pass through Bishkek, and until the railway construction is completed, expenses will be under the control of the three countries.

China contributes 51% of the funds, while the Kyrgyz and Uzbek sides contribute 24.5% each, stated the head of Kyrgyzstan. According to international norms, after the return of invested funds, the two sides will exit the project, leaving 100% with Kyrgyzstan.

"This railway is primarily needed not for others, but for us. We will establish a transit corridor through Central Asia between Europe and other countries, including China. This is also important for economic benefit and geopolitical stability," said Japarov.

The agreement to build the railway was signed on 6 June in Beijing. The route passes through mountainous terrain via the following points: Kashgar - Torugart - Makmal - Jalal-Abad - Andijan.

It is planned that by 2023, the annual transportation volume on the new railway will reach 8 million tons, by 2024 - 10 million tons, and by 2050 - 13.5 million tons.

As a result, delivery times for goods will be reduced by 7 days. Uzbekistan could gain economic benefits from transit cargo amounting to US$150-200 million per year.

The project will significantly improve export-import connections not only for Uzbekistan but also for Tajikistan, Afghanistan, Turkmenistan, and other countries in the region, providing substantial transit opportunities and linking China with the Indian subcontinent via a single railway line, which was previously only possible by sea.

The new railway will also provide Central Asia with access to the Pacific Ocean through China, and China with access to the Persian Gulf.

The design and construction of the China-Kyrgyzstan-Uzbekistan railway will be undertaken by the Chinese company China Railway International.

The parties intend to establish a Joint Project Company on the territory of Kyrgyzstan in accordance with local legislation. This will optimize interaction between the participating countries. China’s share in the company will be 51%, with Kyrgyzstan and Uzbekistan each holding 24.5%.